Er komt inderdaad weer een keer goed nieuws van BIEL.
Today's Action From Bioelectronics Corp. (PINK:BIEL) is More than Deserved
By Bryan Murphy
Published: April 16, 2012 11:16:48 AM PDT
How do you get your stock to rally 40% in one day? Ask the folks at Bioelectronics Corp. (PINK:BIEL), since whatever it is they did between Friday and now, it worked. The company, which manufactures pain-management technology, is watching its stock trade higher on some pretty high volume, and possibly kick-starting a much bigger technical move in the process. Specifically, BIEL has pushed off the 50-day moving average line today, and used it as a springboard to move above the 100-day moving average line... for the first time in weeks. Though the stock managed to stop its bleeding a few weeks ago, this is the first real evidence that it's ready to turn things around.
Interestingly - and in a good way - the company's supporting the stock's rebound with real reasons. Specifically, its devices are starting to get legal protection, some revenue, and publicity traction. They're all working together, which is something that couldn't be said just a few weeks ago.
Bioelectronics Corporation makes the ActiPatch line of products aimed at treating wrist, foot, back, and knee pain. It also offers Allay, for menstruation pain, and RecoveryRX, for post-surgical pain and accelerated healing. All the devices work using the same principle though... an electromagnetic field that puts affected cells back into a balanced, natural, and healthy state.
It seems a little Star-Trekkish, and perhaps it is. Users are convinced though, and more are apt to be on the way now that the technology is being examined be credible sources like peer reviewed medical journals, and actually winning patents. Specifically, Aesthetic Plastic Surgery Journal featured Bioelectronics' Pulsed Radio Frequency Energy (PRFE) therapy as a way to treat post-op pain in its November issue, while The Journal of Craniofacial Surgery noted the technology was viewed as successful in transforming two cell lines of pluripotent osteoprogenitor cells into bone... an important aspect of a successful bone regeneration therapy.
BIEL is winning key patents too, protecting its technology for many, many years. Europe awarded a patent for the company's electromagnetic therapy device and methods a few days ago, while China approved a patent for the same back in December. By early March, new distribution agreements for China had been inked, and we can reasonably assume new European distributorships are in the works now that Bioelectronics Corp. is fully protected there.
So what's today's driver for the stock's surge? Most likely it was the fact that the company's CEO Andrew Whelan was interview Francis Gaskins about the company's opportunity, though much of the interview (available online) was an underscore of how the products were featured on the Dr. OZ show - a real potential game-changer, especially in the U.S.
All that being said, while the idea is brilliant and the technology is legitimate, the weakest link so far has been meaningful revenue. There are some product sales, but the top line for the past four quarters is only around $756K. On the other hand, BIEL is only a $5.55 million company, so even a modest of sales increases now that the Chinese and European markets are opening up could mean that market cap is still too low compared to the company's potential future. Looks like traders are finally starting to see that too, given today's action from the stock.